Australia’s No. 2 pension fund announces complete thermal coal exit

Australia’s second largest superannuation fund has completely divested from thermal coal and ploughed $1 billion into renewable and low-emission technology in the year since it declared it would reshape its business in line with climate targets.

According to its progress report, Aware Super, formally First State, has reduced emissions in its listed equities portfolio by 45 per cent and by 63 per cent across its socially responsible investment options.

Chief executive Deanne Stewart said more needed to be done to achieve Aware’s goal to reduce emissions across its entire portfolio by 45 per cent by 2030 in line with the Paris Agreement targets, on the way to net zero by 2050.

She said Aware started moving towards a divestment from carbon intensive investment as far back as 2015 when it became clear not only that climate change presented a direct risk to the retirement savings of fund members, but that there were significant opportunities for growth in emerging and growing renewable and low-carbon technologies.

28 July 2021

IEEFA